Prices in the Denver-Aurora-Lakewood area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), advanced 0.8 percent for the two months ending in May 2023, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Michael Hirniak noted that the all items less food and energy index rose 1.2 percent in April and May, largely due to increasing costs for shelter. The food index also advanced 0.8 percent over the two-month period. The energy index fell 4.9 percent. (Data in this report are not seasonally adjusted. Accordingly, bi-monthly changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U advanced 5.1 percent. The index for all items less food and energy rose 5.6 percent over the year, while food prices increased 7.6 percent. Energy prices fell 5.9 percent, almost entirely the result of decreasing prices for gasoline. (See chart 1 and table 1.)

  

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Chart 1. Over-the-year percent change in CPI-U, Denver-Aurora-Lakewood, CO, May 2020–May 2023

Month	All items	All items less food and energy
May 2020	1.9	3.1
Jul 2020	3.1	3.3
Sep 2020	1.1	1.3
Nov 2020	0.3	0.6
Jan 2021	0.4	0.4
Mar 2021	1.6	0.7
May 2021	3.2	1.8
Jul 2021	3.5	2.4
Sep 2021	4.5	3.1
Nov 2021	6.5	5.2
Jan 2022	7.9	7.0
Mar 2022	9.1	8.0
May 2022	8.3	7.1
Jul 2022	8.2	6.6
Sep 2022	7.7	7.2
Nov 2022	6.9	6.7
Jan 2023	6.4	5.9
Mar 2023	5.7	5.6
May 2023	5.1	5.6

Food prices rose 0.8 percent for the two months ending in May. Prices for food away from home (restaurant, cafeteria, and vending purchases) increased 1.8 percent, while prices for food at home (grocery store prices) rose 0.1 percent for the same period. Within the food at home category, increases in the indexes for dairy and related products (+2.1 percent) and other food at home (+0.7 percent) were almost entirely offset by a decrease in the indexes for fruits and vegetables (-1.4 percent) and nonalcoholic beverages and beverage material (-1.3 percent).

Over the year, food prices rose 7.6 percent. Prices for food at home rose 6.8 percent since a year ago, with all six major grocery store food group indexes contributing to the rise. The other food at home index (which includes items like sugar, sweets, fats, and oils) contributed most to the over-the-year increase at 7.4 percent, followed by fruits and vegetables (+8.2 percent). Prices for food away from home advanced 8.8 percent over the same period.

The energy index fell 4.9 percent for the two months ending in May. The decrease was mainly due to lower prices for gasoline (-11.0 percent), but electricity (-1.2 percent) also fell. The two-month decline was partially offset by a rise in prices for natural gas service.

From May 2022 to May 2023, energy prices fell 5.9 percent, entirely due to lower prices for gasoline (-17.2 percent). Partially offsetting the decline were increased prices for electricity (+1.9 percent) and for natural gas services.

The index for all items less food and energy increased 1.2 percent in April and May, after rising 1.0 percent in February and March. Higher prices for owners’ equivalent rent of residences (+1.2 percent) were the largest factor, with recreation (+3.0 percent), public transportation, and lodging away from home also making notable contributions. These increases were partially offset by lower prices for household furnishings and operations (-2.3 percent) and apparel (-4.0 percent).

Over the year, the index for all items less food and energy increased 5.6 percent. Components most contributing to the rise included owners’ equivalent rent of residence (+7.9 percent), rent of primary residence (+11.1 percent), and recreation (+8.1 percent). Lower prices for medical care services and used cars and trucks (-3.2 percent) partially offset these increases.

The July 2023 Consumer Price Index for the Denver-Aurora-Lakewood area is scheduled to be released on Thursday, August 10, 2023.

The Consumer Price Index (CPI) measures the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI-U) which covers approximately 93 percent of the total U.S. population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of the total U.S. population. The CPI-U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force.

The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month, prices are collected in 75 urban areas across the country from about 6,000 housing units and approximately 22,000 retail establishments—department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index.

The index measures price changes from a designated reference date. For most of the CPI-U the reference base is 1982-84 equals 100. An increase of 7 percent from the reference base, for example, is shown as 107.000.  Alternatively, that relationship can also be expressed as the price of a base period market basket of goods and services rising from $100 to $107. For further details see the CPI home page on the internet at www.bls.gov/cpi and the CPI section of the BLS Handbook of Methods available on the internet at www.bls.gov/opub/hom/cpi/.

In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period.

The Denver-Aurora-Lakewood, CO, Core Based Statistical Area is comprised of Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park counties in Colorado.

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